Baku, August 27 - Neftegaz.RU. The 2 companies signed on August 25 an agreement during of German Chancellor Angela Merkel’s trip to Azerbaijan. The German energy provider and the Azerbaijan state oil & gas company have been working in close cooperation for the past 5 years.
Rovnag Abdullayev, CEO of SOCAR: «Inking this agreement once again reiterates the high level of economic ties between our 2 countries, demonstrates the cooperation parties enjoy under the Southern Gas Corridor project as well as highlights the important role Azerbaijan and SOCAR play in European energy security.»
The principle aim of the new agreement is to enhance efficiency in energy use in production processes and thereby lower greenhouse gas emissions in Azerbaijan. The feasibility study shows, thanks to the application of modern technologies, a significant achievement of natural gas savings in the gas grid is possible.
Back in 2013, UNIPER and SOCAR concluded a long-term gas supply contract. Until 2045, up to 1.5 billion m³ of natural gas is slated to flow to Europe each year via Southern Gas Corridor. These gas deliveries serve to diversify the European and with it the German gas supplies and enhance security of supply and competition.
In 2016 SOCAR and UNIPER formed a joint venture for the development of energy efficiency. The JV will gain additional value by modernizing and expanding the electricity and steam generation facilities at the SOCAR chemical complex in Sumgayit Azerikimya.
The launch of new facilities is scheduled for early 2020. With an investment volume of around €30 million, the project draws mainly on German technology.